Lease Receivable

12 Months Ended

Dec. 30, 2023

6. Lease Receivable

For deferred equipment agreements that contain embedded operating leases, upon lease commencement, the Company defers and records the equipment cost of operating lease assets within property, plant and equipment, net of accumulated depreciation. These operating lease assets are subsequently amortized to cost of goods sold over the lease term on a straight-line basis.

For deferred equipment agreements that contain embedded sales-type leases, the Company recognizes lease revenue and costs, as well as a lease receivable, at the time the lease commences. Lease revenue related to both operating-type and sales-type leases for the years ended December 30, 2023 and December 31, 2022 was approximately $58.0 million and $52.0 million, respectively. Lease revenue for the year ended December 31, 2022 has been adjusted from the previously reported amount of $57 million to reflect the recategorization of certain system related revenue as non-lease revenue. Costs related to embedded sales-type leases within the Company’s deferred equipment agreements are included in cost of goods sold.

Lease receivable from sales-type leases consists of the following:


(in millions)	December 30, 2023		December 31, 2022
Lease receivable	$	101.9	$	101.8
Allowance for credit loss	(0.3)		(0.2)
Lease receivable, net	101.6		101.6
Less: current portion of lease receivable	(30.2)		(28.5)
Lease receivable, non-current	$	71.4	$	73.1

As of December 30, 2023, estimated future maturities of customer sales-type lease receivables and operating lease payments for each of the following fiscal years are as follows:


	Future Lease Receivables/Payments (in millions)
Fiscal year	Sales-Type Leases		Operating Leases

2024	$	30.2	$	10.4
2025	25.0		9.3
2026	18.9		8.5
2027	13.6		6.9
2028	7.0		5.4
Thereafter	6.9		6.0
Total	$	101.6	$	46.5
Less: imputed interest(1)	—
Present value of total lease payments	$	101.6

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(1) The calculation of the rates implicit in the leases resulted in negative discount rates. Therefore, the Company as a lessor used a 0% discount rate to measure the net investment in the lease.